I started building Stock Shark site a while back, after I had made up my mind to read, learn, and study about the stock market. I thought that I could use a system to test everything myself without actually putting any real money into it. And me being me, I don't usually like to use systems created by anyone else. Not entirely normal, I know, but bare with me. One way or another, after starting to study everything about the stock market, the analysis methods and so on, I also started blogging about it on another site. I just felt that if I write about it at the same time, maybe it will stick better and maybe I can also understand it better.

A bit later I started creating this site and I also decided I'd try to create a number of weird charts, charts that would show something. I always felt that volatility in a security is not necessarily a good thing. But it can produce great returns. So I created a chart based on my own equations, charts that took into account things like volume, daily fluctuations (volatility), number of plus-days, number of minus-days. By the end of the day, what I noticed, was that I cared the most about turning volatility to my advantage. And the truth is - for couple of months my chart actually worked, it showed me 80% correct results. Meaning, I could have won with my own equations 80% of the time. Of course, with the little fact that my chart was upside down. Meaning, stocks it would say go up, actually went down and vice versa.

But it worked! Well...okay, kind of. I am allowed to believe, right?

Now it actually seems there's a lot easier way to turn volatility to your advantage. CBOE and CBOE Futures Exchange has come out with VIX options and futures that help you manage risk and diversify your portfolio. VIX has a strong negative correlation to the broad market and offers you effective ways to get protection when you need the most. Find out more below.